Annual expenses on WAN and & local hardware are allowable as revenue expenditure

ACIT Vs M/s Linde Engineering India Pvt. Ltd. (ITAT Delhi)

Assessee incurred license expenses towards WAN and local hardware, annual fee which has been treated by Assessing Officer to be capital expenditure. It is observed that assessee has to incur these expenses annually on which tax has been deducted. Assessee claimed license expenses of 49,62,461/- in Profit and Loss account for the year under consideration out of total invoice amount of Rs.83,51,907/-. We agree with the observation of Ld. CIT (A) that the license expenses incurred by assessee do not create any asset but only p

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